The Democratic Republic of Congo is making strategic moves to diversify its mining industry and attract new investors, according to recent statements from the country’s top mining official. Mines Minister Kizito Pakabomba outlined plans to streamline processes for customs and taxes, while also announcing a partnership with the United Arab Emirates.
A key component of the DRC’s strategy involves revamping a railway system to facilitate mineral exports through an Atlantic Ocean port, potentially offering easier access to US and European markets.
This initiative includes improving the railway from Kolwezi, a major mining hub, to the Angolan border, connecting with a line leading to the port of Lobito. The US has already committed $553 million to upgrade the Angolan section of this railway.
The DRC’s Foreign Minister, Therese Kayikwamba Wagner, mentioned the possibility of a tender process for rebuilding the Congolese portion of the railway. Minister Pakabomba estimated the initial two-year cost of this rail improvement project at $245 million.
These efforts come as the DRC cements its position as a crucial player in the global metals market. The country recently surpassed Peru to become the world’s second-largest copper producer and remains the leading source of cobalt, both vital materials for the global energy transition.
The government’s push for diversification is partly driven by frustration over its limited influence in the mining sector, particularly in cobalt production. Despite accounting for about three-quarters of global cobalt output last year, the DRC has seen prices plummet to eight-year lows due to increased production, especially by Chinese companies like CMOC Ltd.
In line with its new approach, the DRC government recently opposed the sale of Trafigura Group-backed Chemaf Resources Ltd. to China’s Norin Mining Ltd., demonstrating its commitment to making “strategic choices” about mine ownership.
The country wants to “attract better investors, more investors and diversified investors,” according to Pakabomba.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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